Sugar maker Tereos sees record year as European quotas end

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Dive Brief:

Sugar maker Tereos has claimed a French record in the amount of sugar beet transformed during the 2017-2018 period following the end of European sugar quotas, FoodIngredientsFirst reports.

The company's sugar beet campaign, during which the beets are harvested and taken to factories, saw 20 million tons of beets processed – up 30% compared to the previous year.

Tereos attributed the campaign's success to increased investment in its nine French sugar plants and in agricultural R&D, as well as better tools to protect the quality of the beets and improve preservation.

Dive Insight:

Until October 2017, sugar production in the European Union (EU) was restricted to 80% of the region's demand – a policy that kept European sugar prices about 50% higher than the global open market average. The end of quotas is therefore good news for food and beverage manufacturers in the region, which are likely to see prices tumble as the area dedicated to sugar beet production expands.

France, Germany and Poland are set to see the biggest production gains, according to a recent report from Stratégie Grains, which also predicts an increase in EU exports to North Africa and the Middle East as Western European sugar consumption continues to decline.

The increased potential for European sugar production comes as global food and drink companies are cutting sugar use. Consumers increasingly are shunning caloric sweeteners due to health concerns like obesity and diabetes. Rabobank expects a 5% fall in sugar use among food and drink companies over the next two to three years – which would offset an expected increase in global consumption during this period.

Despite a delay in the upcoming requirement for food manufacturers to list added sugars on nutrition facts panels, companies have continued to cut sugar in their products. Organic yogurt maker Stonyfield has said it will reduce added sugars by as much as 40% in some of its lines, while Nestlé says it has developed a hollow sugar molecule to cut sugar content without compromising sweetness.

Soda makers Coca-Cola, Dr Pepper Snapple and PepsiCo have all committed to reducing the calories Americans consume from sugary drinks by 20% before 2025.

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